Coal-fired generation declines ~3% as hydro gains steam

Electricity demand in India is estimated to have declined ~5.3% on-year to ~144 billion units (BUs) in August even as the country received ~7% excess rainfall during the month.

This follows a 6.7% on-year rise in electricity demand in July.

Consequently, demand grew ~7% on-year in April-August 2024.

Peak power demand is estimated to have declined to 217 GW in August compared with 238 GW a year earlier, which was the second-highest level recorded in fiscal 2024.

Similarly, weighted average market clearing price in the real time market declined ~45% on-year to Rs 3.3 per unit in August 2024 from Rs 6.0 per unit a year earlier.

Demand moderated across India, with the western and northern regions experiencing on-year declines of ~10% and ~6%, respectively.

The decline in regional power demand closely follows the rainfall pattern and state-specific consumer preferences.